The merger of Ethereum is one of the most important developments to occur in the blockchain technology since its inception. Proof-of-work (POW) will be replaced by proof-of-stake once this event takes place on the blockchain (POS). while everyone is now hoping for the wonderful effects that Merge will have, some crypto experts believe Ethereum coin price could fall down as a side-effect of the merge.
The influence of the change is already making its presence felt in the cryptocurrency market. In the last two days, there has been a significant drop in the price of Ethereum throughout the market. In addition, some who analyse the cryptocurrency market believe that following the merge there is a possibility of a further decline in the price of Ethereum.
Even while everyone anticipates positive outcomes, there is still a chance that a difficult situation could take place. If anything like this occurs, it will have a detrimental impact on the price of cryptocurrencies.
As a result of the buzz around the merge, Ethereum coin price has already shown stronger performance than Bitcoin in recent weeks. On the other hand, there are specialists of crypto industry who are concerned that the excitement around the merger may result in contrast effects on the ethereum. In this situation, a strong anticipation of future events or economic reports drive a rise in the values of assets. After the event is over, the prices that were raised go back down.
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Lark Davis, a well-known crypto investor and influential figure, recently shared his opinion on the recent buzz. He said that the merger is an essentially positive event in a tweet that he published. Davis provided an overview of the capabilities that are anticipated to be included in the next Ethereum POS. On the other hand, he said that they would not have a substantial effect right away as they were implemented.
According to the findings of Davis’ research, a gain in energy conservation, emission levels, and all of the characteristics will not exhibit their effects for a significant amount of time. As a result, he believes that the Ethereum integration exhibits characteristics of the “sell the news effect.”
Quinten Francios, one more crypto investor, predicts that price of Ethereum would fall after the merger in contrast to the price of bitcoin. As a result, this indicates that the price of Bitcoin will increase after the merger, whilst the price of Ethereum would decrease. He went on to say that the price of Ethereum will rebound significantly once some time had passed.
Ethereum merge won’t solve other fundamental problems. The reason the outcomes of the Ethereum merging would not take effect immediately has been outlined by specialists. The move will convert the consensus process of the blockchain to POS; nevertheless, it will not fix some of the other basic concerns. It won’t, for instance, do anything about the problem of low gas prices or increase the the network’s capacity.
There won’t be any increase in the rate of transactions as a result. Even if the update is carried out flawlessly, it won’t solve the issue of excessive transaction costs.